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At your manufacturing plant, factory overhead is allocated based on direct labor costs. Because you manage a department that is highly automated, you have relatively
At your manufacturing plant, factory overhead is allocated based on direct labor costs. Because you manage a department that is highly automated, you have relatively low (compared to other departments) direct labor cost. In an attempt to lower your overall costs, you have instructed the budget officer to classify most of your department's costs as indirect.
How would this action impact your department? How would impact the other departments in the plant?
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